Daelim Industrial, Hyundai Heavy Industries and GS E&C did business in Iran's energy sector between 2005 and 2009 and had contracts with the U.S. government during the same period, a report on sanctions against Iran by the U.S. General Accounting Office points out.
The report was submitted to Congress to identify companies that could be excluded from U.S. government contracts if they continue dealing with Iran.
The report formulated in May said, "At least 41 foreign firms had commercial activity in Iran’s energy sector between 2005 and 2009. Of these firms, seven had contracts with the U.S. government valued at almost $880 million."
Korea topped the list with three. The other four were from Spain, France, Italy and Taiwan. Daelim Industrial ranked third among the seven companies in terms of the order amount with US$111.1 million worth of contracts from the U.S. government. Hyundai Heavy Industries won $5 million worth and GS E&C less than $100,000.
The Korean firms got their U.S. government contracts mainly by dealing with the U.S. Forces Korea, given that the report said all the seven firms had something to do with the U.S. Defense Department.
Daewoo Shipbuilding and Marine Engineering signed a contract for an oil tanker with Iran, but was not involved in any project initiated by the U.S. government during the period.
This report was submitted to Joseph Lieberman, chairman of the Senate Committee on Homeland Security and Government Affairs, and Jon Kyl, a ranking member of the Subcommittee on Terrorism and Homeland Security of the Senate Judiciary Committee.
A diplomatic source in Washington said, "If Korean firms continue relations with Iran, they will likely be excluded from projects or contracts initiated by the U.S. government or banned from using the financial network in the U.S. once sanctions against Iran are in full swing."